Article | admin | April 19, 2016
Former Executive Sues AHS for Breach of Employment Contract
Statement of claim alleges AHS and health minister conspired against executive
A former health executive is suing the Minister of Health Fred Horne and Alberta Health Services for breach of employment contract, defamation and loss of income, according to the Edmonton Journal. The executive is seeking damages of more than $5.5 million, claiming the health minister and AHS conspired to make the executive a scapegoat for other government expense scandals that were occurring at the time.
Executive accused of misusing expense account
The executive, who was hired as the chief financial officer of the
AHS in May 2012 saw his employment terminated on August 1 of that same
year. The termination came about just as information was coming to light
about his time as an executive with the Capital Health Authority in
2005-08.
That information showed that the executive claimed approximately
$350,000 in expenses while with the Capital Health Authority. The
expenses, which included expensive meals, car upgrades, and car washes,
created a controversy in the media at the time.
The executive claims that the AHS initially told him that they would
continue to support him in his role as chief financial officer and that
the two parties were working on a public relations plan to combat the
negative publicity. However, according to the executive, the AHS was
conspiring with Horne to fire him in order to make him a scapegoat for
other government scandals.
Lawsuit claims irreparable harm
The executive claims that ever since the termination of his contract
his reputation has suffered irreparable harm and that the prospects of
him being re-employed at a senior executive level in Canada have been
extremely damaged. The executive is also seeking to overturn AHS’s
previous decision to withhold his severance pay.
The executive has always claimed that the expense claims were
legitimate and followed the rules set down at the time by Capital
Health. Furthermore, a legal opinion previously submitted to Horne said
that the AHS would be unlikely to succeed if it sued the executive to
get back the expenses that were claimed.
Horne and the AHS refused to comment on the lawsuit and a statement of defence has yet to be submitted.
Dealing with employment disputes
The above case shows just how important it is for businesses and
corporations to deal with employment disputes quickly and effectively.
Any company accused of breach of employment contract, or a company that
is dealing with other legal matters surrounding business and corporate
law, needs to make sure they have qualified legal counsel on hand at all
times. A business and corporate law firm can provide the expertise a
company needs when dealing with complicated legal issues and will work
closely with the company to make sure that any outstanding concerns are
resolved satisfactorily.